-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DEX7R6nZmdepwgdW2wp7NnjnzwEE4ZEyWFXhRiqU596RovCMRQQZZNrTTXiobQZ/ 8DK88MWzE7M7sMYqHxXQtg== 0000107822-08-000011.txt : 20080528 0000107822-08-000011.hdr.sgml : 20080528 20080528170141 ACCESSION NUMBER: 0000107822-08-000011 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080331 FILED AS OF DATE: 20080528 DATE AS OF CHANGE: 20080528 EFFECTIVENESS DATE: 20080528 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NICHOLAS HIGH INCOME FUND INC CENTRAL INDEX KEY: 0000107822 IRS NUMBER: 390713680 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-00216 FILM NUMBER: 08864143 BUSINESS ADDRESS: STREET 1: 700 NORTH WATER STREET STREET 2: SUITE 1010 CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 4142724650 MAIL ADDRESS: STREET 1: 700 NORTH WATER STREET STREET 2: SUITE 1010 CITY: MILWAUKEE STATE: WI ZIP: 53202 FORMER COMPANY: FORMER CONFORMED NAME: NICHOLAS INCOME FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: WISCONSIN INCOME FUND INC DATE OF NAME CHANGE: 19831018 FORMER COMPANY: FORMER CONFORMED NAME: WISCONSIN FUND INC DATE OF NAME CHANGE: 19760422 0000107822 S000009138 NICHOLAS HIGH INCOME FUND INC C000024853 CLASS I NCINX C000024854 CLASS N NNHIX N-Q 1 nq032008.htm nq032008.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-00216

Nicholas High Income Fund, Inc.
(Exact Name of Registrant as Specified in Charter)

700 North Water Street, Milwaukee, Wisconsin 53202
(Address of Principal Executive Offices) (Zip Code)

Jeffrey T. May, Senior Vice President, Secretary and Treasurer
700 North Water Street
Milwaukee, Wisconsin 53202
(Name and Address of Agent for Service)

Registrant's Telephone Number, Including Area Code: 414-272-4650

Date of Fiscal Year End: 12/31/2008

Date of Reporting Period: 03/31/2008

Item 1. Schedule of Investments.

SCHEDULE OF INVESTMENTS (unaudited)
Nicholas High Income Fund, Inc.
AS OF: 03/31/2008
 
                VALUE
                -----------
 
 
CORPORATE BONDS - 86.43%            
    Consumer Discretionary - Auto & Components - 1.85%    
$ 500,000   American Axle & Manufacturing,Inc. 5.25%, 02/11/14   $ 395,000
500,000   Ford Motor Company  7.125%, 11/15/25   330,000
1,250,000   General Motors Corporation 8.25%, 07/15/23   875,000
                -----------
                1,600,000
                -----------
    Consumer Discretionary - Consumer Durables & Apparel - 1.01%    
1,000,000   Jarden Corporation  7.50%, 05/01/17   875,000
                -----------
 
    Consumer Discretionary - Consumer Services - 1.41%    
1,500,000   United Rentals (North America), Inc. 7.75%, 11/15/13   1,222,500
                -----------
 
    Consumer Discretionary - Hotels, Restaurants & Leisure - 2.50%    
1,000,000   Herbst Gaming, Inc.    7.00%, 11/15/14   182,500
1,250,000   MGM MIRAGE 6.625%, 07/15/15   1,087,500
1,500,000   Station Casinos, Inc. 6.50%, 02/01/14   900,000
                -----------
                2,170,000
                -----------
    Consumer Discretionary - Media - 2.22%    
500,000   DIRECTV Holdings LLC 8.375%, 03/15/13   506,875
1,000,000   Nielsen Finance LLC    10.00%, 08/01/14   995,000
500,000   Scholastic Corporation 5.00%, 04/15/13   426,218
                -----------
                1,928,093
                -----------
    Consumer Discretionary - Retail - 3.80%    
1,000,000   Michaels Stores, Inc. 10.00%, 11/01/14 *   875,000
1,000,000   Rent-A-Center, Inc.    7.50%, 05/01/10   925,000
1,500,000   Sally Holdings LLC  9.25%, 11/15/14 *   1,496,250
                -----------
                3,296,250
                -----------
    Consumer Staples - Food & Staple Retail - 1.96%    
500,000   Denny's Holdings, Inc. 10.00%, 10/01/12 *   460,000
2,000,000   Restaurant Company (The) 10.00%, 10/01/13   1,240,000
                -----------
                1,700,000
                -----------
    Consumer Staples - Food, Beverage & Tobacco - 4.21%    
2,000,000   Pilgrim's Pride Corporation 7.625%, 05/01/15   1,925,000
750,000   Pinnacle Foods Finance LLC 9.25%, 04/01/15   663,750
1,000,000   Reynolds American Inc. 7.25%, 06/01/13   1,059,161
                -----------
                3,647,911
                -----------
    Consumer Staples - Household & Personal Products - 2.05%    
1,000,000   Solo Cup Company 8.50%, 02/15/14 *   845,000
1,000,000   Visant Holding Corporation 8.75%, 12/01/13   935,000
                -----------
                1,780,000
                -----------
    Energy - 13.10%            
2,000,000   Chesapeake Energy Corporation 7.625%, 07/15/13   2,050,000
875,000   CONSOL Energy Inc.  7.875%, 03/01/12   914,375
500,000   Deluxe Corporation  7.375%, 06/01/15   466,250
1,000,000   Denbury Resources Inc. 7.50%, 04/01/13   1,022,500
500,000   El Paso Corporation    6.875%, 06/15/14   509,888
1,000,000   Forest Oil Corporation 7.75%, 05/01/14   1,027,500
750,000   Grant Prideco, Inc.    6.125%, 08/15/15   766,875
500,000   Harvest Operations Corp. 7.875%, 10/15/11   457,500
1,500,000   Helix Energy Solutions Group,Inc. 144A Restricted, 9.50%, 01/15/16   1,500,000
500,000   Hornbeck Offshore Services, Inc. 6.125%, 12/01/14   472,500
750,000   Inergy, L.P. 6.875%, 12/15/14   731,250
1,000,000   Newfield Exploration Company 6.625%, 09/01/14   985,000
500,000   Tesoro Corporation  6.50%, 06/01/17   447,500
                -----------
                11,351,138
                -----------
    Financials - Banks - 1.55%    
1,000,000   Cardtronics, Inc. 9.25%, 08/15/13   940,000
500,000   MGIC Investment Corporation 5.375%, 11/01/15   407,087
                -----------
                1,347,087
                -----------
    Financials - Diversified - 2.53%    
2,000,000   General Motors Acceptance Corporation 5.276%, 12/01/14   1,336,258
1,000,000   Nuveen Investments, Inc. 144A restricted, 10.50%, 11/15/15   857,500
                -----------
                2,193,758

                    -----------
    Health Care - Equipment - 2.57%    
500,000   Bausch & Lomb Incorporated 144A restricted, 9.875%, 11/01/15 *   508,750
750,000   Biomet, Inc. 144A restricted, 10.00%, 10/15/17   785,625
1,000,000   Boston Scientific Corporation 6.40%, 06/15/16   932,500
                    -----------
                    2,226,875
                    -----------
    Health Care - Pharmaceuticals & Biotechnology - 0.57%    
500,000   Axcan Intermediate Holdings Inc. 144A restricted, 9.25%, 03/01/15   495,000
                    -----------
 
 
    Health Care - Services - 8.54%        
1,250,000   DaVita, Inc. 7.25%, 03/15/15 *   1,218,750
1,500,000   Fresenius Medical Care Capital Trust IV 7.875%, 06/15/11   1,556,250
1,000,000   HCA Inc. 9.125%, 11/15/14 *       1,030,000
1,000,000   Psychiatric Solutions, Inc. 7.75%, 07/15/15   995,000
2,000,000   Res-Care, Inc. 7.75%, 10/15/13   1,900,000
750,000   United Surgical Partners International, Inc. 8.875%, 05/01/17   705,000
                    -----------
                    7,405,000
                    -----------
    Industrials - Capital Goods - 9.01%    
250,000   Actuant Corporation 144A Restriced, 6.875%, 06/15/17   246,875
500,000   American Railcar Industries, Inc. 7.50%, 03/01/14   440,000
1,250,000   Baldor Electric Company 8.625%, 02/15/17 *   1,237,500
1,500,000   Bombardier Inc. 144A restricted, 6.30%, 05/01/14   1,425,000
1,000,000   DRS Technologies, Inc. 6.875%, 11/01/13   980,000
500,000   Interline Brands, Inc. 8.125%, 06/15/14   477,500
1,500,000   L-3 Communications Corporation 6.375%, 10/15/15   1,466,250
1,250,000   Manitowoc Company, Inc. (The) 7.125% 11/01/13   1,237,500
350,000   Mueller Water Products, Inc. 7.375%, 06/01/17   301,875
                    -----------
                    7,812,500
                    -----------
    Industrials - Commercial Services & Supplies - 10.86%    
1,750,000   Alliance Laundry Systems LLC 8.50%, 01/15/13   1,592,500
1,500,000   Allied Waste North America, Inc. 6.375%, 04/15/11   1,475,625
1,500,000   ARAMARK Services, Inc. 5.00%, 06/01/12   1,305,000
750,000   Corrections Corporation of America 6.25%, 03/15/13   735,000
1,000,000   GEO Group, Inc. (The) 8.25%, 07/15/13   1,007,500
2,250,000   Great Lakes Dredge & Dock Company 7.75%, 12/15/13   2,058,750
1,000,000   Mobile Mini, Inc. 6.875%, 05/01/15   830,000
500,000   US Investigations Services Inc. 10.50%, 11/01/15   407,500
                    -----------
                    9,411,875
                    -----------
    Industrials - Transportation - 1.41%    
500,000   CMA CGM S.A. 144A restricted, 7.25%, 02/01/13   435,000
1,000,000   Park-Ohio Industries, Inc. 8.375%, 11/15/14   790,000
                    -----------
                    1,225,000
                    -----------
    Information Technology - Hardware & Equipment - 2.40%    
2,000,000   Flextronics International Ltd. 6.25%, 11/15/14   1,840,000
250,000   Seagate Technologies HDD Holdings 6.80%, 10/01/16   238,125
                    -----------
                    2,078,125
                    -----------
    Information Technology - Semiconductors &    
     Semiconductor Equipment - 0.45%    
500,000   Freescale Semiconductor, Inc. 8.875%, 12/15/14   391,250
                    -----------
 
 
    Information Technology - Software & Services - 6.65%    
1,000,000   First Data Corporation 144A restricted, 9.875%, 09/24/15 *   822,500
2,000,000   Iron Mountain Incorporated 8.625%, 04/01/13   2,020,000
1,500,000   SunGard Data Systems Inc. 10.25%, 08/15/15 *   1,507,500
1,500,000   Unisys Corporation 6.875%, 03/15/10 *   1,410,000
                    -----------
                    5,760,000
                    -----------
    Materials - 1.42%                
500,000   Georgia-Pacific Corporation 144A restricted, 7.00%, 01/15/15   468,750
500,000   Nalco Company 7.75%, 11/15/11       506,250
250,000   Steel Dynamics, Inc. 144A restricted, 7.375%, 11/01/12   252,500
                    -----------
                    1,227,500
                    -----------
    Telecommunication Services - 1.10%    
500,000   FairPoint Communications, Inc. 144A restricted, 13.125%, 04/01/18   480,000
500,000   Syniverse Technologies Inc. 7.75%, 08/15/13   471,250
                    -----------
                    951,250
                    -----------
    Utilities - 3.26%                
321,000   AES Corporation (The) 144A restricted, 8.75%, 05/15/13   333,840
500,000   AES Corporation (The) 8.00%, 10/15/17   506,250
1,000,000   NRG Energy, Inc. 7.25%, 02/01/14   987,500
1,000,000   Texas Competitive Electric Holdings Company LLC    
     144A restricted, 10.25%, 11/01/15   996,250
                    -----------

            2,823,840
            -----------
Total Corporate Bonds (COST: $81,034,190)   74,919,952
            -----------
 
COMMON STOCKS - 3.60%        
    Energy - Energy - 1.87%    
12,500   Energy Transfer Partners, L.P.   570,875
15,000   Inergy, L.P.*       418,650
25,000   Kayne Anderson Energy Total Return Fund, Inc.   634,250
            -----------
            1,623,775
            -----------
    Exchange Traded Fund - 0.57%    
84,000   Van Kampen Senior Income Trust   495,600
            -----------
    Health Care - Services - 0.41%    
15,000   Brookdale Senior Living Inc.   358,500
            -----------
    Industrials - Transportation - 0.75%    
25,000   Eagle Bulk Shipping Inc.   644,000
            -----------
Total Common Stocks (COST: $3,236,384)   3,121,875
            -----------
 
PREFERED CONVERTIBLE STOCK - 0.84%    
    Financials - Banks - 0.84%    
20,000   Fannie Mae        
     Fixed-To-Floating-Rate Non-Cumulative Preferred Stock, Series S   481,000
10,000   Freddie Mac        
     Fixed-to-Floating-Rate Non-Cumulative Perpetual Preferred Stock, Series Z   244,000
            -----------
Total Convertible Preferred Stock   (COST: $767,350)   725,000
            -----------
 
SHORT-TERM INVESTMENTS - 8.21%        
    Commercial Paper - 7.12%    
$500,000   Aetna Inc. 2.75%, 04/25/08   499,083
350,000   Alcoa Inc. 3.00%, 04/01/08   350,000
500,000   Black & Decker Corporation 3.10%, 04/09/08   499,656
500,000   Diageo Capital plc 2.98%, 04/03/08   499,917
500,000   Diageo Capital plc 3.40%, 04/10/08   499,575
475,000   H.J. Heinz Finance Company 3.22%, 04/14/08   474,448
450,000   Kraft Foods Inc. 2.85%, 04/16/08   449,466
850,000   Time Warner Inc. 3.10%, 04/09/08   849,414
750,000   Travelers Companies, Inc. (The) 2.75%, 04/10/08   749,484
750,000   Wisconsin Energy Corporation 3.12%, 04/04/08   749,805
550,000   Wisconsin Energy Corporation 3.20%, 04/02/08   549,951
            -----------
            6,170,799
            -----------
    Variable Rate Security - 1.09%    
947,439   Wisconsin Corporate Central Credit Union    
     04/01/2008, 2.32%       947,440
            -----------
Total Short-Term Investments (COST: $7,118,239)   7,118,239
            -----------
 
 
INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING - 11.64%    
    Money Market Fund - 1.26%    
1,089,420   BlackRock Provident Institutional Funds    
     TempCash Fund 04/01/08, 3.264%   1,089,420
            -----------
    Repurchase Agreement - 10.38%    
9,000,000   Barclays Capital, Inc.    
     Agency Pass-Thru 04/01/08, 2.50%   9,000,000
            -----------
TOTAL Investments purchased with cash proceeds    
 from securities lending (COST: $   10,089,420)   10,089,420
            -----------
 
 
TOTAL SECURITY HOLDINGS (COST:   $102,245,583) - 110.72%   $95,974,486
 
LIABILITIES, NET OF OTHER ASSETS - (10.72)%   (9,294,773)
            -----------
TOTAL NET ASSETS       $86,679,713
            -----------
            -----------
 
% OF NET ASSETS        
* All or a portion of principal or shares are on loan.    

As of March 31, 2008, investment cost for federal tax purposes was $102,266,816 and the tax basis components of unrealized appreciation/depreciation were as follows:

Unrealized appreciation   $ 432,142
Unrealized depreciation    (6,724,472)
    -----------
Net unrealized depreciation   $(6,292,330)
    -----------
    -----------

For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent Semiannual or Annual Report to Shareholders.

Item 2. Controls and Procedures.

(a) The Fund's principal executive officer and principal financial officer have concluded that the Fund's disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b) There were no significant changes or corrective actions with regard to significant deficiencies or material weaknesses in the Fund's internal controls or in other factors that could significantly affect the Fund's internal controls during the last fiscal quarter.

Item 3. Exhibits.

Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2(a) under the Act, attached hereto as part of EX-99.CERT.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Nicholas High Income Fund, Inc.

By: /s/ David O. Nicholas
Name: David O. Nicholas
Title: Principal Executive Officer

Date: 05/28/2008

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: /s/ David O. Nicholas
Name: David O. Nicholas
Title: Principal Executive Officer
Date: 05/28/2008

By: /s/ Jeffrey T. May
Name: Jeffrey T. May
Title: Principal Financial Officer
Date: 05/28/2008

EX-99.CERT 2 certnq0308jtm.htm certnq0308jtm.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

I, Jeffrey T. May, certify that:

1. I have reviewed this report on Form N-Q of Nicholas High Income Fund, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: 05/28/2008   /s/ Jeffrey T. May
    Jeffrey T. May
    Principal Financial Officer

EX-99.CERT 3 certnq0308don.htm certnq0308don.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

I, David O. Nicholas, certify that:

1. I have reviewed this report on Form N-Q of Nicholas High Income Fund, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: 05/28/2008   /s/ David O. Nicholas
    David O. Nicholas
    Principal Executive Officer

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